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CRU EXPECTS URANIUM TO HIT MORE THAN $100/LB IN THE COMING YEARS
CRU expects extraordinary growth in uranium demand and persistent market tightness, with prices
hitting more than $100/lb in the next 5-10 years.
When asked what will fuel these record prices, Ian Hiscock, Consultant at CRU, said �Persistent
market deficits are set to continue, with supply struggling to meet strong demand from Asia, and in
particular China. Nuclear generating capacity in China is on track to increase by over 800%, to
80GWe in the next ten years, most of which is already under construction or in the advanced stages
of planning. Strong demand growth is also likely in South Korea and India, and additional demand is
expected from new entrants such as the UAE. As a result, global demand could more than double by
2030.�
Philip Macoun, Principal Consultant at CRU, added, �Following a legacy of low uranium prices, there
has been a dearth of investment in new mine development and exploration. Even under a spell of
high uranium prices, primary supply will struggle to meet rapidly increasing demand, and supply
from secondary sources is expected to decline.�
The uranium market has enjoyed a flurry of activity over the latest 6 months, buoyed by
unprecedented importing activity from China and growing optimism in the industry as a whole.
Chinese imports tripled between 2009 and 2010, with China importing almost 10,000 t more
uranium than current reactor requirements. As a consequence, the UxC spot price for U3O8 has
climbed more than 50% from $41.50/lb in mid-July 2010, to $66.00 earlier this week
CRU is the world�s leading independent research and consultancy group for the mining, metals,
cables and fertilizer industries. CRU has recently published a detailed study on uranium mining costs
as well as a market outlook to 2030, including analysis on demand, supply and prices.
For further inquires contact:
Ian Hiscock Philip Macoun
Consultant Principal Consultant
CRU | The Independent Authority CRU | The Independent Authority
+44 (0) 207 903 2244 +44 (0) 207 903 2200
[email protected] [email protected]